Setting up a new trust to hold assets now & to transfer those which you already own or are purchasing will cause you to pay stamp duty on the transfers. Not sure if the cgt discount applies to the trust but it would need to hold the assets for 12months to get any discount on cgt BUT you would trigger a cgt event when you transfer your assets to the trust.
Consider all these costs before transferring them to the trust
Consider if this meets the goals of the smsf ie to pay a return. As there are no returns until 8 years or more and you are at risk of not exerciseing the option and the option price doesn’t come off the purchase price….. seems like a con weighted for the spruiker & vendor not the investor unless you have done your due diligence and know when & what the land will be rezoned to take.
Other than getting LL insurance, everything else is pretty much beyond your control. Getting a good property manager on board is a good start even if you have to pay a little more than the others, you have the higher yields to cover it.
Property is a physical asset. Meet and greet a few realtors, talk to them (they don't all bite). Find out what they can do for you, what services that they provide, what fees and charges you will have to pay, when will they send you the rent etc.
Do the same for the on-line agencies and see what the differences are.
you will only pay tax in the hands of the beneficiaries ie if you make a profit and distribute it, then the beneficiaries pay the tax (if you don't distribute the profit, the trustee will pay tax at the highest marginal rate). The bad news is you can't distribute the loss if you are negatively geared and you will also pay land tax.
If you are not living with your g/f at the time of settlement, then you are still eligible for the FHBG. Depending upon the date you signed and applied for the FHBG will depend upon what amount that you will get.
which state is the property in? (my reference is NSW).
if the fixed term is over 3 years the residential tenancy act would not apply, so a commercial lease could be used
they are not exercising their option. End of story, they can go on monthly if you agree or you can give notice to vacate upon expiry of the lease (consider what the vacancy rates are like and what the alternatives are ie long or short term vacancy with $X rent achievable). An option is just that, optional at the tenant's right to decide whether to continue or not.
Who is doing their negotiation (by the sounds of it, the managing agent (who should be working for you not the tenant)?
You can decide to negotiate a new lease at current market but it would be a complying residential lease not a commercial lease agreement.
Once you've determined what you need to do to achieve the planning controls for strata titling, you will need to submit a development application as well as carrying out any required building work to meet current building code requirements. Then get subdivision plans prepared etc.
But if the only two real beneficiaries are Mrs & Mr No Mates who are both in the top tax bracket how do I save tax? It's fine when there are other beneficiaries (ie low income earners over the age of 18) but what if there aren't)?
Trusts aren't exempt from land tax from $1 (generally)
It costs $ to have the books done/company set up annually.
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